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Data centre relocation to emerging markets like Malaysia a boost to multiple sectors

The ongoing United States-China trade tension has prompted the relocation of data centres to emerging markets like Malaysia, benefitting other sectors across the value chain, said Moody’s Ratings vice-president and senior credit officer, Nidhi Dhruv.

She noted that this shift is expected to have a positive impact on sectors such as telecommunications, real estate, semiconductors, heating and cooling system providers, and computing equipment manufacturers.

“When we look a little bit further, mining companies that focus on future-facing commodities such as copper would also benefit from this activity,” Nidhi said during the ‘Asia Pacific (APAC) Data Centres – Rapid Expansion Offers Benefits for Property and Telco Sectors’ webinar today.

The webinar was part of Malaysia Rating Corp Bhd’s two-day Malaysian Bond and Sukuk Conference 2024: Charting the Course for Malaysia’s Economic Future, with Moody’s Ratings being the event partner.

Currently, the data centre capacity in APAC stands at over 10,500 megawatts (MW), and is expected to grow to 24,800MW by 2028, with key markets being China, Japan, Australia, India and Singapore.

From a global viewpoint, Nidhi said that data centres in APAC account for approximately 30 per cent of the worldwide capacity development planned over the next five years, requiring an estimated investment of more than US$564 billion by 2028.

“There is already a robust development pipeline of around 4,400MW under construction, which we anticipate would be completed by year-end,” she added.

On the readiness of the APAC data centre market, she said Moody’s had looked at several factors, including cloud infrastructure presence, land availability, subsea cable connectivity, data localisation requirements, and governance.

“Governments across the region have introduced a variety of policies and initiatives that directly or indirectly promote investments in local data centres.

“These measures include tax relief, subsidies, preferential electricity rates, and a reduction in import duties, and Malaysia particularly scores high on government support,” she added.

Meanwhile, Spencer Ng, Moody’s vice-president – senior credit officer for Public, Project and Infrastructure Finance, said that rapid expansion in data centres will also have a positive impact on the utility sector in the long run, given the need for additional power to meet data centre demands.

“Power grid operators will also need to invest in network expansion and strengthening to support power delivery.

“Based on the power usage efficiency ratio of 1.2 times, we expect incremental power requirement of about 5.3 gigawatts across APAC on an unconstrained basis.

“In markets where data centre operators are looking to power their facilities with green power, we could see additional investments for renewable projects as well,” he said.

On Malaysia’s renewable energy, Ng said that Moody’s expects the power requirement for data centres to double to about 500 MW in the next two years, which sounds manageable, given the current power reserve margin of about 30 per cent.

He added that these new investments will add to the substantial investments already necessary for the net zero transition, and further expansion will be crucial.

Source: Bernama

Data centre relocation to emerging markets like Malaysia a boost to multiple sectors


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Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the collaboration with electric vehicle (EV) manufacturer Tesla is expected to drive Malaysia to be the main green technology hub in the region.

In a discussion with the Tesla Malaysia delegation today, the minister said Tesla has reiterated its support for the local ecosystem by involving nine Malaysian companies in developing EV charging infrastructure. It will also collaborate with local higher education institutions for knowledge transfer and human capital development.

“May this joint effort continue to grow, bringing great benefits to our country’s economy, technology, and sustainable energy,“ he said on his social media after discussions with the Tesla Malaysia delegation.

Tengku Zafrul said today’s discussion focused on the progress and implementation of the Global Battery Electric Vehicle (BEV) AP Scheme.

Until the end of July 2024, Tesla has successfully installed 52 units of Supercharger chargers with a capacity of 250KW, 54 units of Wall Connector AC chargers, and more than 4,500 units of home chargers in Peninsular Malaysia.

With an investment reaching US$13.5 million (RM59.06 million), Tesla has shown a strong commitment to the development of EV charging infrastructure in Malaysia.

“We also discussed the great potential of battery energy storage technology which is expected to increase energy efficiency and the stability of Malaysia’s electricity grid,“ the minister added.

Source: Bernama

Collaboration with Tesla expected to drive Malaysia to be main green technology hub in region – Tengku Zafrul


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Amazon Web Services (AWS), an Amazon.com Inc. company, has launched the AWS Asia Pacific (Malaysia) Region with plans to invest about US$6.2 billion (RM29.2 billion) in Malaysia through 2038.

In a statement issued from Seattle, the United States, the company said that starting today, developers, startups, entrepreneurs, and enterprises, as well as government, education, and non-profit organisations, will have greater choices for running their applications and serving end users from AWS data centres located in Malaysia.

“The construction and operation of the new AWS Region is estimated to add approximately US$12.1 billion (RM57.3 billion) to Malaysia’s gross domestic product and will support an average of more than 3,500 full-time equivalent jobs at external businesses annually through 2038.

“These jobs, including construction, facility maintenance, engineering, telecommunications, and others within the country’s broader economy, will be part of the AWS supply chain in Malaysia,” it said.

With the launch of the AWS Asia Pacific (Malaysia) Region, AWS has 108 availability zones across 34 geographic regions, with announced plans to launch 18 more availability zones and six more AWS Regions in Mexico, New Zealand, Saudi Arabia, Taiwan, Thailand, and the AWS European Sovereign Cloud.

It said the AWS Asia Pacific (Malaysia) Region consists of three availability zones located far enough from each other to support customers’ business continuity but near enough to provide low latency for high availability applications that use multiple availability zones.

“Each availability zone has independent power, cooling, and physical security, and is connected through redundant, ultra-low-latency networks,” AWS said.

AWS customers focused on high availability can design their applications to run in multiple availability zones to achieve even greater fault tolerance.

“With today’s launch, AWS is proud to support Malaysia’s digital transformation and help accelerate its role as a regional hub for artificial intelligence (AI),” said AWS vice-president of infrastructure services Prasad Kalyanaraman.

Meanwhile, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the launch of an AWS infrastructure region in Malaysia provides access to new and emerging technology for Malaysian entities and businesses of all sizes, boosting our country’s capabilities for digital innovation.

This milestone is a significant step towards fulfilling the vision of Malaysia’s New Industrial Master Plan 2030 to build a highly-skilled, innovative, prosperous, inclusive, and sustainable economy.

“We recognise the transformative power of digitalisation, cloud computing and AI as key drivers in Malaysia’s effort to become a manufacturing and services hub within Asia.

“As the largest investment made by an international technology company in Malaysia, the AWS infrastructure region will help ensure Malaysia remains competitive on the global stage,” he said.

AWS offers the broadest and deepest portfolio of services, including analytics, computing, database, the Internet of Things, generative AI, machine learning, mobile services, storage, and other cloud technologies.

Customers from startups and enterprises to public sector organisations and non-profits would be able to use advanced technologies from the world’s leading cloud provider to drive innovation, meet data residency preferences, achieve lower latency, and serve demand for cloud services in Malaysia and across the Asia Pacific.

Source: NST

Amazon launches AWS Asia Pacific (Malaysia) region, to invest over RM29 bln


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Investment, Trade and Industry Ministry says it has secured RM8 billion of potential exports and RM4.5 billion of potential investment during Prime Minister Datuk Seri Anwar Ibrahim’s official visit to India from Aug 19-21.

Its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz was part of the Prime Ministerial delegation.

According to the ministry, the potential exports are in sectors such as palm oil and palm oil-based products, chemicals and chemical products, oil and gas and aircraft spare parts.

A commitment of RM4.5 billion in investment was secured from Indian companies in sectors such as information technology, logistics, chemical and pharmaceutical sectors.

“These potential investments are expected to create more than 3,000 high-value job opportunities in the next two to there years,” it said today.

The ministry also hosted a roundtable meeting between Anwar and 31 prominent captains of industry from among major Indian industry players in various sectors such as information technology, pharmaceutical, transportation, semiconductor and fintech services.

This high-level gathering in New Delhi served as a catalyst for fostering strategic partnerships, promoting investment and trade opportunities, while deepening bilateral cooperation between the two nations.

In his opening remarks, Anwar reiterated Malaysia’s commitment to strengthening ties with India across various fronts, particularly in trade and investment.

He said Malaysia’s strategic position as a gateway to the Asean market where robust infrastructure, and vibrant business ecosystem are key factors that make it an attractive destination for investors seeking new opportunities for growth and diversification.

Anwar also held one-on-one meetings with Tata Consultancy Services (TCS), HCL Technologies Ltd (HCLTech) and Emami Agrotech Ltd.

Both TCS and HCLTech discussed their plans to expand their workforce and create training programs for Malaysians, including fresh graduates, women, and public officers, focusing on IT and artificial intelligence (AI) skills.

Emami Agrotech, one of the largest manufacturers of biodiesel in Eastern India and a key exporter of biodiesel to Europe and other Southeast Asian countries, had expressed their intention to import more palm oil from Malaysia.

Meanwhile, Tengku Zafrul said the positive outcome on the workforce expansion plans by TCS and HCL Technologies in Malaysia is also a welcome move.

The ministry, through the Malaysian Investment Development Authority (MIDA), will do its best to facilitate their expansion, he added.

“We will also continue to intensify efforts to attract quality digital investments – such as data and cloud-based technologies – to create more opportunities for our small and medium enterprises (SMEs) and higher-paying jobs for our people,” he noted.  

Tengku Zafrul also witnessed the exchange of seven memorandam of understandings (MoUs) between Malaysian companies and their Indian partners, to be realised within a span of one to five years.

The MoUs cover various areas of interest, including green technology, innovation, waste management, start-ups, railway infrastructure as well as promotion of trade and investment.

India was Malaysia’s largest trading partner, export destination and import source among the South Asia countries in 2023.

Total trade between the countries was recorded at RM75.39 billion (US$16.53 billion) in 2023.

Source: NST

Malaysia secures RM8bil potential exports, RM4.5bil potential investments from PM’s India visit


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SD Guthrie Bhd (KL:SDG), the world’s largest palm oil producer by acreage, said on Thursday its venture into renewable energy may begin to contribute to its earnings within the next two years.  

The company formerly known as Sime Darby Plantation Bhd is focusing on projects under the Corporate Green Power Programme, which could produce income before the end of 2025, group managing director Datuk Mohamad Helmy Othman Basha said during a virtual earnings briefing.

If the projects materialise and the company secures the assets and necessary agreements by end of this year, “2026 and 2027 are when the impact on the bottom line will be”, he said.

SD Guthrie has leased 11 sites for renewable energy projects with a total capacity of 227 megawatts through the programme. Mohamad Helmy has previously said that every megawatt requires an investment of about RM2.5 billion over the next three to five years, and deliver a return of 8% to 13%.

The company has also participated in the tender process for Large-Scale Solar 5 (LSS5) that closed for bidding on July 25, in addition to leasing its land to owning green energy projects.

SD Guthrie also aims to grow its renewable energy segment through third-party access that would allow an electricity buyer to negotiate pricing directly with a renewable energy power plant for green electricity supply.

“We are excited about this,” Mohamad Helmy said. “We can put up a solar farm wherever we have available land” that is less productive for oil palm trees, he said.

On the proposed development of a port city on Carey Island by the Selangor government, Mohamad Helmy expects the project to have a “huge impact” on SD Guthrie as the company owns about 85% of land on the island.

He did not elaborate further as the project is still pending government approvals.

At Thursday’s noon break, shares in SD Guthrie were five sen or 1.11% higher at RM4.56, giving the group a market capitalisation of RM31.54 billion.

Source: The Edge Malaysia

SD Guthrie expects renewable energy venture to contribute to earnings over next two years


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Malaysia will lead the coordination between Asean countries and India to improve aspects of the free trade agreement (FTA) between the two parties, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said a delegation from Malaysia will visit New Delhi in November to attend an FTA-related consultation session on behalf of Asean with India, given that Malaysia will assume the position of Asean chair in 2025.

“We target next year when as chair of Asean we will not only be able to finalise the revision of the FTA between India and Asean which is already in place, but also to improve it.

“Malaysia is given this responsibility to coordinate,” he told Bernama when met at the sideline of the 2024 Umno General Assembly here on Thursday.

He said this when commenting on the success of Prime Minister Datuk Seri Anwar Ibrahim’s official visit to India recently, where Indian Prime Minister Narendra Modi hoped that the review of the free trade agreement between Asean and India would be completed within the specified time period.

India and Asean have held several rounds of negotiations to make changes to the Asean-India Trade in Goods Agreement (AITIGA) to make the agreement more trade-friendly and beneficial for businesses across the region.

The negotiations began in May 2023.

Source: Bernama

Malaysia to lead coordination of Asean-India FTA review in November — Zafrul


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Malaysia’s participation in BRICS will underscore the country’s potential as a gateway for economic activities in Asean countries, said an economist.

INCEIF University economic analyst Baharom Abdul Hamid said Malaysia is also able to take advantage of trade opportunities to increase market access, thereby attracting more investments from the BRICS countries.

He said Malaysia has applied to join BRICS, a cooperation bloc for emerging economies established in 2009 and includes Brazil, Russia, India, and China, followed by South Africa’s participation in 2010.

In January 2024, countries including Iran, Egypt, Ethiopia, and the United Arab Emirates also joined as new members.

“When we join an economic bloc, we will enjoy some (benefits, such as) tax relief, non-tariff barriers and others.

“Brazil, for example, is one of the biggest contributors of halal meat imports to Malaysia. Therefore, Malaysia has the potential to become a major gateway for halal food from Brazil at a lower cost.

“We can use this opportunity to be a gateway not only for food sources in Malaysia but as a hub for other Asean countries’ food sources,” Baharom said during Bernama TV’s ‘Ruang Bicara’ programme yesterday.

In addition, Malaysia, one of the world’s largest semiconductor producers, has the potential to expand cooperation with China, the main producer of electric vehicles.

“We need to continue our cooperation with China as a complement to the semiconductor sector for industrial use in China. At the same time, we should also expect China to further increase investments in Malaysia,” he said.

Baharom also stressed the importance of Malaysia’s participation in BRICS to be accompanied by strategic planning, ensuring economic spillover to several sectors and industries in the country as well as maximising trade and investment potentials that benefit the domestic economy.

“We need to make sure that by joining the BRICS, micro, small, and medium enterprises (MSMEs) are also protected.

“We do not want there to be an overflow of foreign goods that could otherwise affect local MSMEs,” he said.

For that purpose, careful planning should be done to evaluate which sectors are suitable to be opened and which should be protected.

In the meantime, Baharom urged the government to make periodic reports with transparency and integrity to see the overall impact of BRICS membership on the national economy.

Source: Bernama

Joining BRICS will highlight Malaysia’s potential as Asean economic activity gateway


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Seven states have surpassed the national manufacturing industry capacity utilisation rate in the second quarter of 2024 (2Q2024).

The nation’s manufacturing industry capacity utilisation increased by 3.8 percentage points year-on-year (y-o-y) to 82.1% during the said quarter from 78.3% in 2Q2023.

According to the Statistics Department Malaysia (DOSM), the seven states which surpassed the overall national average are Labuan (94.3%), Terengganu (84.8%), Pahang (84.7%), Selangor (84.6%), Negeri Sembilan (84.4%), Melaka (83.5%), and Johor (83.3%).

Additionally, nearly all states registered a y-o-y increase in the capacity utilisation rate, except for Terengganu and Kelantan.

In a statement on Wednesday, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in 2Q2024, all sub-sectors posted capacity utilisation of above 80%.

The highest rate was recorded by the transport equipment and other manufacturers sub-sector (86%); followed by textiles, wearing apparel, leather and footwear (82.8%); and non-metallic mineral products, basic metal and fabricated metal products (82.3%).

“Quarter-on-quarter, the capacity utilisation of the manufacturing industry rose by 1.3 percentage points from 80.8% in 1Q2024.

“The higher capacity utilisation rate was also reflected in the expansion of the industrial production index for the manufacturing industry (4.9% y-o-y),” he said.

He said the capacity utilisation in the export-oriented industries increased by 3.9 percentage points y-o-y to 81.3% in 2Q2024 from 77.4% in 2Q2023, while the capacity utilisation in the domestic-oriented industries also expanded by 3.4 percentage points y-o-y to 83.7% in 2Q2024.

Mohd Uzir added that low demand, material shortages, and ongoing machinery and equipment maintenance are the main factors affecting capacity utilisation in the manufacturing industry.

Source: Bernama

Seven states surpass national manufacturing capacity utilisation rate in 2Q2024


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Korean investment firm GG56 Korea Ltd will invest US$1 billion (RM4.37 billion) in Forest City to develop Malaysia’s first Korean Culture Town.

This is following the signing of a memorandum of agreement (MOA) with Forest City’s master developer Country Garden Pacificview Sdn Bhd (CGPV) to develop the project, which will include K-Content Production Studios, an international Cultural District and a world-class residential development.

CGPV executive director Datuk Md Othman Yusof said the MOA marked a significant milestone in the ongoing development of Forest City, further solidifying its position as a global hub for innovation, culture and sustainable growth.

“This MOA is not just a formal agreement, it reflects our shared vision for Forest City and we are thrilled to collaborate with GG56 Korea to bring these transformative projects to life.

“Together, we will build a city that stands as a testament to innovation, culture, and sustainable development,” he told reporters after the signing ceremony here on Wednesday.

The agreement was signed by Md Othman on behalf of CGPV while GG56 Korea was represented by its chief executive officer and co-founder Kim Young Kun, and Chung Dong Wan, chairman of CMK Consortium, a subsidiary of GG56 Korea.

Meanwhile, Kim said the agreement provided an opportunity for the company to create something extraordinary in Forest City.

“Through our collaboration with CGPV, we aim to contribute to the city’s growth and establish it as a leading global destination,” he said.

Forest City is a visionary urban project in Johor Bahru. It is designed to be a smart, green and sustainable city that integrates residential, commercial and industrial spaces with cutting-edge technology and infrastructure.

GG56 Korea is an investment firm with a focus on high-impact projects in areas such as healthcare, entertainment, technology, and real estate.

Source: Bernama

Korean firm to invest US$1b in Forest City to develop first K-culture town


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Malaysia welcomes Japan’s support and cooperation in accelerating the country’s energy transition journey to decarbonisation and achieving net-zero greenhouse gas (GHG) emissions by 2050, said Economy Minister Rafizi Ramli on Wednesday.

He said the national document, the National Energy Transition Roadmap (NETR), that aims to accelerate the energy transition was largely inspired by the inaugural Asia Zero Emission Community (AZEC) Ministerial Meeting last year.

“We anticipate that AZEC’s contributions will be instrumental in driving forward the shift towards more sustainable and low-carbon energy solutions which are crucial for the future of our region,” he said in a joint press conference after the 2nd AZEC Ministerial Meeting here.

Rafizi said the just concluded meeting has achieved its objectives in further enhancing the existing close cooperation, particularly enhancing energy trilemma namely security, affordability and sustainability.

He highlighted that Malaysia, as an AZEC partner country, had revised its renewable energy target, setting a more ambitious goal of achieving 70 per cent installed capacity by 2050, an increase from the previous target of 40 per cent by 2035.

The Malaysian government has also initiated several key measures, including the implementation of solar projects on a wide scale, the establishment of Energy Exchange Malaysia to promote cross-border green electricity sales to neighbouring countries, the NETR flagship projects as well as 50 key initiatives which are currently on track and progressing well.

The anticipated presentation of the Carbon Capture, Utilisation, and Storage (CCUS) Bill later this year will comprehensively regulate all aspects of CCUS, while the forthcoming Climate Change Bill, expected to be finalised by June 2025, will introduce critical mechanisms such as carbon pricing to address and mitigate the impacts of climate change, he said.

Meanwhile, Rafizi said Malaysia is honoured to co-host next year’s meeting with Japan in Kuala Lumpur after the recent in-principle approval from the Cabinet.

“This 2025 meeting represents not only our commitment to decarbonisation but also our dedication to establishing Malaysia as the energy hub of the region,” he added.

AZEC is launched by 11 partner countries in 2023 as a platform that seeks to further advance decarbonisation in Asia towards the goal of carbon neutrality while achieving economic growth and energy security, creating various pathways tailored to each country’s circumstances.

Source: Bernama

Malaysia Welcomes Japan’s Support In Accelerating Energy Transition — Rafizi


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Malaysia could champion sustainable practices by leveraging its strength in the aerospace industry through regional collaboration across ASEAN, said Deputy Minister of Investment, Trade and Industry (MITI) Liew Chin Tong.

He said sustainability is important in the aerospace industry as it adapts to global demands for greener practices, adding that trends like sustainable aviation fuels, electrification, and carbon-neutral technologies are shaping the future of flight.

“Malaysia has a unique opportunity to lead the region in these advancements when we assume the ASEAN Chairmanship in 2025.

“By leveraging our strength, we can champion sustainable practices, foster regional collaboration, and accelerate the adoption of green technologies across ASEAN,” he said in his speech at the launch of Malaysia Aerospace Summit 2024 (MyAERO ‘24), here today.

Liew said Malaysia should not only adopt technology but also strive to become an innovator in the industry.

He noted that the aerospace industry can be constrained by the fact that there are ultimately only a few global players making most of the planes, and industries in Malaysia — a relatively small country — are vertically linked to the global giants as suppliers.

“But that must not stop the Malaysian aerospace industry from horizontally linking with other industries in Malaysia such as the semiconductor industry or those involved in developing materials, specialty chemicals, or critical minerals,

“There is also much potential to connect the palm oil industry to develop the sustainable aviation fuel industry,” he said.

Liew added that through these horizontal linkages, Malaysia could innovate and create new products, processes or materials with Malaysian intellectual property.

“Malaysia does not just want to be a manufacturing hub, we aspire to be a nation that creates,” he added.

Source: Bernama

Malaysia can champion sustainable practices via aerospace industry — Liew


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Malaysia and India today solidified their bilateral relations with the exchange of eight memorandums of understanding (MOUs).

The MOUs cover a broad range of sectors, including worker recruitment, traditional medicine, digital technologies, culture, tourism, and public administration.

Prime Minister Datuk Seri Anwar Ibrahim, who departed on a three-day official visit to India yesterday, and his India counterpart Narendra Modi witnessed the MOU exchange at Hyderabad House here.

Hyderabad House is used by the India government for official functions, particularly high-level meetings and banquets involving visiting foreign dignitaries.

The first MOU, concerning the recruitment, employment, and repatriation of workers, was inked and exchanged between Human Resources Minister Steven Sim Chee Keong and India External Affairs Minister S. Jaishankar.

A second MOU, on ayurveda and other traditional systems of medicine, was exchanged between Foreign Affairs Minister Datuk Seri Mohamad Hasan and his counterpart Jaishankar.

An MOU on cooperation in the field of digital technologies was exchanged between Digital Minister Gobind Singh Deo and Jaishankar.

An MOU on cooperation in the fields of culture, arts, and heritage, was exchanged between Tourism, Arts, and Culture Minister Datuk Seri Tiong King Sing and Jaishankar. Tiong and Jaishankar also exchanged another MOU on tourism cooperation.

An MOU on public administration and governance reforms was exchanged between the Public Service Department director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz and India External Affairs Ministry secretary (east) Jaideep Mazumdar.

An MOU on cooperation in the fields of youth and sports was exchanged between Mohamad and Jaishankar.

And finally, an MOU between the International Financial Services Centres Authority and the Labuan Financial Services Authority (LFSA) was exchanged between LFSA chairman Datuk Wan Mohd Fadzmi Che Wan Othman Fadzillah and India High Commissioner to Malaysia B.N. Reddy.

At the ceremony, India-Malaysia CEO Forum co-chair Tan Sri Kuna Sittampalam, presented the Report of the 2nd India-Malaysia CEO Forum to Investment, Trade, and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

These deals are expected to strengthen strategic partnership between the two nations, promote cooperation across various fields, and create new opportunities for mutual growth and development.

Source: Bernama

Malaysia, India sign eight MOUs


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Prime Minister Datuk Seri Anwar Ibrahim said Malaysia aims to diversify its economic diplomacy efforts by participating in the intergovernmental organisation BRICS and enhance its collaboration with member countries through shared initiatives and strategic partnerships.

Malaysia has applied to join BRICS, a grouping of large emerging economies that was established in 2009 as a cooperation platform for emerging economies comprising Brazil, Russia, India, and China, with South Africa joining the group in 2010.

In January 2024, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE) joined the organisation as new members.

“India’s distinct and influential role within BRICS is of particular importance, as we recognise that our strong bilateral ties will add significant value to the dynamics of the grouping,” he said in his lecture titled: “Towards a Rising Global South: Leveraging Malaysia-India Ties” at Sapru House, Indian Council of World Affairs (ICWA) here, today.

Anwar, who is also the finance minister, said Putrajaya is confident that its entry into this group will not only strengthen our economic linkages with India but also open new avenues for cooperation across a broader spectrum of industries and policy areas.

Calling such grouping as minilateralism, he said contrary to some views that such arrangements are contentious, Malaysia believes that minilateral mechanisms ultimately work towards delivering public goods to benefit our people and raise living standards.

“In that vein, Malaysia will not shy away from exercising agency and participating in these arrangements as we see fit. Our recent application to join BRICS is a fine example.”

Cumulatively, the gross domestic product (GDP) of BRICS member countries amounted to US$26.6 trillion, which is 26.2 per cent of the world’s GDP, almost the same as the economic strength of the G7 countries.

BRICS member countries have a large population of 3.21 billion, which continues to increase with the inclusion of Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE), which have a total of 333 million people, forming a mega-market that includes as many as 3.54 billion people, or almost 45 per cent of the world’s population.

Anwar arrived in the Indian capital of New Delhi on Monday for a three-day official visit to strengthen the 67-year-old India-Malaysia ties and establish a multi-sectoral cooperation agenda for the future.

Accompanying Anwar on the visit are Foreign Minister Mohamad Hasan; Investment, Trade, and Industry Minister Tengku Zafrul Tengku Abdul Aziz; Tourism, Arts and Culture Minister Tiong King Sing; Digital Minister Gobind Singh Deo; and Human Resources Minister Steven Sim Chee Keong.

This is the prime minister’s first visit to India after assuming office in November 2022.

Total trade between Malaysia and India stands at US$16.5 billion, bolstered by an impressive compounded annual growth rate of 8.5 per cent in the last two decades. (US$1 = RM4.38)

Anwar added that the trade growth trajectory is not just a statistic but a testament to the deepening economic linkages facilitated by frameworks such as the Malaysia-India Comprehensive Economic Cooperation Agreement and the ASEAN-India Free Trade Agreement.

Source: Bernama

Malaysia aims to diversify economic diplomacy through BRICS – PM Anwar


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The Northern Corridor Implementation Authority (NCIA), in collaboration with the Malaysian Investment Development Board (Mida), has secured RM31.38 billion in investments for Penang during the first half of 2024.

NCIA chief executive Mohamad Haris Kader Sultan said that this substantial investment demonstrates strong investor confidence in the long-term prospects of the Northern Corridor Economic Region (NCER), particularly in Penang.

“These investments encompass key sectors outlined in the NCER Strategic Development Plan, including High Value Manufacturing, Advanced Services, and Modern Agriculture. As a result, more than 6,600 job opportunities have been created during this period.

“This positive performance will serve as a catalyst for NCER to continue driving investment and business ecosystem development in the second half of the year, leveraging the region’s strengths, especially in the electrical and electronic (E&E) and semiconductor sectors,” he said.

Haris also announced that the NCER Technology Innovation Center (NTIC) building in Bayan Lepas has been completed and will soon be operational. This facility is expected to significantly enhance innovation, research and development (R&D) activities, and strengthen the value chain for small and medium enterprises (SMEs), further establishing Penang as a regional hub for technology and innovation.

“In the first half of 2024, 16 local SME companies in Penang received support through matching grants under the NTIC programme to improve their value chains via the Centre of Excellence (CoE) and Technology and Innovation (T&I) initiatives.

“Additionally, 144 local workers have been approved to undergo technical skills training under the Advanced Technology Meister Programme (ATMP) initiative,” he added.

NTIC is a key component of NCER’s “Technology Valley” initiative, which focuses on research, product development, and specialised design. The programme also serves as a platform for large local companies (LLCs), multinational corporations (MNCs), start-ups, individual technocrats, and young entrepreneurs to engage in technological and high-value-added activities within NCER, ultimately enabling them to generate their own intellectual property (IP).

Source: NST

NCIA and MIDA secure RM31.38 billion in investments for Penang


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Iskandar Malaysia has seen 70 per cent or RM291.4 billion of its total cumulative investment of RM413.1 billion realised to-date since the economic region’s inception in 2006.

Speaking to Bernama, Iskandar Regional Development Authority (IRDA) chief executive Datuk Dr Badrul Hisham Kassim said this remarkable progress demonstrates that Iskandar Malaysia is on track to achieve its  RM636 billion cumulative investment target by 2030.

“From 2006 to December 2023, the economic region has recorded a cumulative investment of RM413.1 billion, surpassing our RM383 billion target set for the end of 2025,” he told Bernama during the recent Southern Zone MADANI Rakyat 2024 programme at Dataran UTM Skudai, Johor Bahru.

IRDA had set a new 2030 cumulative investment target of RM636 billion for Iskandar Malaysia, after it had successfully surpassed the initial target set during the inception of the economic region.

Badrul Hisham said Iskandar Malaysia will continue to focus on high-value and innovation-driven sectors such as electrical and electronics, aerospace, medical devices, modern farming, electric vehicles, renewable energy and information communication technology, including artificial intelligence data centres.

He said this is also supported by adjacent industries like healthcare and life sciences, financial and business services and the digital creative industry.

“This is in line with the nation’s aspirations, as outlined in the New Industrial Master Plan 2030 and National Energy Transition Roadmap,” he said.

He highlighted that multinational companies such as Insulet, which produces medical devices, and data centres such as Airtrunk, Princeton Digital Group, Wiwynn and Supermicro have all expanded their operations in Iskandar Malaysia recently.

On IRDA’s future direction and the coordination of the Iskandar Malaysia Comprehensive Development Plan III (2022-2030) under the MADANI Economy agenda, he said the government has decided to streamline the economic corridor authorities to focus on efforts to facilitate the realisation of investments.

“Since the Ministry of Economy is now in the process of reviewing and streamlining these functions, we foresee that some changes will be made in our plans and targets soon after,” he said.

The move would enable IRDA to focus on what matters most for Iskandar Malaysia and the people, which is realising investments that will translate into job creation for the people, business for the local businesses and entrepreneurs, and better infrastructure and quality of life, said Badrul Hisham.

Apart from that, he said IRDA will continue to complement the Malaysian Investment Development Authority (MIDA) and Invest Johor by helping to facilitate and ensure that incoming investments can be realised quickly and smoothly.

Commenting on the Johor-Singapore Special Economic Zone (JS-SEZ), Badrul said the Invest Malaysia Facilitation Centre Johor (IMFC-J) which is managed by IRDA, has started its interim operation at its office in anticipation of and to support the creation of the special economic zone.

“The IMFC-J is pivotal in this process, acting as a central facilitator for investments within the JS-SEZ.

“Its role includes expediting approval processes, providing consultation and advisory services, and minimising bureaucratic obstacles by coordinating multiple government ministries and agencies under one roof,” he said.

Source: Bernama

Iskandar Malaysia sees realised investments of RM291.4bil to date


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Pahang is set to become the first state in Malaysia with a comprehensive maritime industry facility through the development of the Kuantan Maritime Hub (KMH) in Gebeng, scheduled for completion by 2034.

Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said the RM2.1 billion project which will be a central hub for maritime activities, supporting a range of trade and industrial operations, is expected to make a significant impact on both the local and national economy.

He emphasised that KMH is more than just a development project as it represents a milestone in progress and future potential, aimed at attracting investors to build factories and related industrial facilities. The hub is projected to generate 17,000 new job opportunities once it begins operations.

“This maritime-focused initiative will feature a world-class shipyard and we anticipate substantial growth in opportunities for industry players involved in this sector,” he said at the groundbreaking ceremony for the KMH in Mukim Sungai Karang, Gebeng here today.

He added that KMH will establish a robust ecosystem, positioning Pahang as a leading player in the national maritime industry and a long-term high-impact industrial centre.

Wan Rosdy noted that the KMH is another high-impact project in Pahang, alongside the East Coast Rail Link (ECRL) and the Kuantan International Airport.

He expressed confidence that once completed, these projects will significantly advance Pahang, potentially making it one of the most developed states in Malaysia.

“The KMH project aligns with the state government’s vision to attract local investors and drive the growth of high-impact industries using cutting-edge technologies.

“I guarantee the state government’s full cooperation in ensuring the project’s success, supported by our political stability. I am confident that Muhibbah Engineering (M) Bhd will deliver this project smoothly and successfully,” he said.

The 202.34-hectare project will include a world-class shipbuilding and maintenance centre, a specialised construction centre for the oil and gas industry, a technical training hub, a maritime industry centre and mixed-use property development.

Source: Bernama

Pahang poised to become Malaysia’s first comprehensive maritime hub


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The Northern Corridor Implementation Authority (NCIA), in collaboration with the Malaysian Investment Development Board (MIDA), has successfully secured RM31.38 billion in investments for Penang in the first half of 2024 (1H2024).

NCIA chief executive, Mohamad Haris Kader Sultan said that this impressive achievement reflected investors’ strong confidence in the long-term potential of the Northern Corridor Economic Region (NCER), particularly Penang.

He said the investments encompass key sectors outlined in the NCER Strategic Development Plan, including high-value manufacturing, advanced services, and modern agriculture, creating more than 6,600 jobs in 1H2024.

In a statement today, he said the positive performance will catalyse NCER’s efforts to attract investments and enhance the business ecosystem in 2H2024, leveraging NCER’s regional advantages, especially in the electrical and electronics (E&E) and semiconductor sectors.

Meanwhile, Mohamad Haris also said the NCER Technology Innovation Centre (NTIC) building in Bayan Lepas here has been completed and will commence operations soon.

NTIC is a programme under NCER’s Technology Valley initiative that focuses on activities related to research, product development and specialised design.

The programme also acts as a platform for large local companies, multinational companies, start-ups, individual technocrats and young entrepreneurs to carry out technological and high-value-added activities at NCER and subsequently generate their own intellectual property.

The NTIC is expected to boost innovation, research and development activities as well as enhance the value chain for small and medium enterprises (SMEs), which will further strengthen Penang’s position as a technology and innovation hub in the region.

Mohamad Haris highlighted that 16 Penang SMEs have already benefited from matching grants under the NTIC programme, aimed at improving their value chains through the Centre of Excellence and Technology and Innovation initiatives in 1H2024.

“Besides that,  a total of 144 local workers have been approved to undergo technical skills training under the Advanced Technology Meister Programme (ATMP) initiative,” he added.

Source: Bernama

NCER records RM31.4bil investments in Penang in 1H2024


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IJM Corp Bhd (KL:IJM) has secured two contracts with a combined value of RM561 million for the construction of data centres in Johor and an industrial manufacturing facility in Penang.

In a statement, IJM Corp said the RM508 million data centre construction project was awarded by an international data centre developer, whose name was not disclosed. The project involves the construction of two data centre buildings in Gelang Patah, Johor.

The first building is scheduled for completion in the third quarter of 2025 (3Q2025), while the second building is expected to be completed in 1Q2026.

The project was secured through a 50:50 joint venture between IJM Corp’s construction unit, IJM Construction Sdn Bhd, and Woh Hup Malaysia Sdn Bhd. This means IJM Corp’s share of the contract is valued at RM254 million.

Woh Hup Malaysia is a unit of Woh Hup (Private) Ltd, a Singapore-based civil engineering firm that secured its first data centre project in 2016 and has since completed six data centres in India, Indonesia, and Singapore for international developers.

Separately, IJM Construction has independently secured a RM307 million contract for the construction of a new electrical and electronics (E&E) manufacturing and warehousing facility in Batu Kawan, Penang.

The 560,000 sq ft facility, located on a 20-acre (8.09-hectare) plot within the Bandar Cassia Technology Park, is intended for a US-based company in the E&E sector.

The facility aims to support growth in the semiconductor capital equipment and healthcare device markets by developing the E&E supply chain ecosystem. Construction of the facility is set to begin this month, with completion expected by October 2025.

The two contracts have increased IJM Construction’s secured jobs year-to-date to RM1.9 billion. Including the RM6 billion outstanding order book as of March 31, the group’s total order book now stands at RM7.9 billion.

IJM Corp group chief executive officer and managing director Lee Chun Fai said that securing the contracts highlights IJM Construction’s expertise in managing complex projects on accelerated schedules, especially as specialist builders of industrial buildings, data centres, and integrated logistics centres.

“By leveraging advanced construction methods like Smart IBS (the industrialised building system) and our industry division’s pretensioned high-strength concrete spun piles, we ensure efficiency, quality and environmental responsibility. The increasing demand for data centres and E&E facilities aligns with our strategic focus, opening new avenues for growth in these critical sectors.

“Collaborating with reputable partners such as Woh Hup enhances our ability to meet industry demands and deliver reliable results,” he elaborated.

It is worth noting that IJM Corp had in June secured a contract to design and build a data centre for a subsidiary of Telekom Malaysia Bhd (KL:TM) in Iskandar Puteri, Johor, for RM331.7 million. The project — known as Block 2 of the Iskandar Puteri Data Centre — was secured from TM Technology Services Sdn Bhd, also via its wholly owned IJM Construction. Construction of the data centre will begin in July 2024 and is slated for completion by 3Q2025.

Source: The Edge Malaysia

IJM Corp bags RM561m contracts to build data centres and industrial manufacturing facility


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PENANG-based MI Technovation Bhd is one of the largest semiconductor-related companies and equipment vendors in the country, with a market value of RM3.5 billion.

The company — together with ViTrox Corp Bhd, Greatech Technology Bhd and Pentamaster Corp Bhd — are known as the Big Four automated test equipment (ATE) manufacturers listed on Bursa Malaysia.

But MI Technovation executive director and group CEO Oh Kuang Eng is making it clear that the company is not resting on its laurels and has already outlined a 10-year roadmap — which started in 2019 — to becoming a diversified semiconductor solutions provider.

Incorporated in 2007, the company sold its first machine in 2010 and went public eight years later.

“MI Technovation is a well-structured company. We know exactly what we intend to accomplish and execute every year, every 2½ years, every five years and every 10 years. We will not venture into a new business without proper long-term planning,” Oh, who was an equipment technology and automation engineer with Hewlett-Packard, tells The Edge in a virtual interview.

Oh, 51, says he does not want MI Technovation to be known as just another local ATE company, but instead, as a multinational semiconductor company with four major business pillars.

“Today, we have two main business units, namely semiconductor equipment and semiconductor materials. By 2029, another two new business units will come into the picture, and MI Technovation will become one of the most complete semiconductor companies in Malaysia.

“We have a very big dream. As our company name suggests, we want to be known as a technology innovation company. Even though we may not achieve 100% of what we want, we will give it a go. If you think about it, a 10-year period is not very long. In other words, our growing path will be very steep,” he says.

A graduate of Universiti Malaya with a Bachelor of Engineering (Mechanical), Oh has over 25 years of experience in the semiconductor industry, specialising in semiconductor automated equipment and process development.

As at April 8, Oh held a 67.16% controlling stake in MI Technovation. His wife Yong Shiao Voon, a 52-year-old Singaporean, also sits on the board as executive director and chief financial officer.

Among the company’s top 30 shareholders are UBS AG Singapore, AIA Bhd, Hong Leong Value Fund, Hong Leong Balanced Fund, Public Islamic Select Treasures Fund and Tokio Marine Life Insurance Malaysia Bhd.

For its equipment business, the group produces wafer level chip scale packaging sorting machines, vision inspection machines, final test handlers, assembly machines, wafer fabrication tools and testing instruments. It has a business presence in Malaysia, Taiwan, South Korea, China and the US.

It is worth noting that MI Technovation had earlier this year ventured into the semiconductor materials business by acquiring Taiwanese firm Accurus Scientific Co Ltd for RM271 million. The acquisition was satisfied via the issuance of 74.25 million new shares at RM3.65 apiece.

With business presence in Taiwan, China and Singapore, Accurus Scientific is involved in the manufacturing of solder spheres, which are widely used in advanced packaging such as ball grid array and wafer level packaging in the semiconductor industry.

“Today, a smart phone processor is so small but so powerful thanks to advanced packaging, in which the solder ball plays a very important role. Starting from next year, we believe the materials business will contribute about 30% to our group’s turnover, while the remaining 70% will come from the equipment business,” says Oh.

MI Technovation generated a net profit of RM54 million on revenue of RM229 million in the financial year ended Dec 31, 2020 (FY2020).

After reporting a weak first quarter ended March 31, 2021 (1QFY2021), with a net profit of merely RM3.51 million — down 65% from RM10.29 million a year ago — the company has quickly rebounded. It posted a net profit of RM26.1 million in 2QFY2021, representing a 44% year-on-year or 644% quarter-on-quarter increase.

Oh says there is good reason for the big drop in 1QFY2021 bottom line, attributing it to one-off operating expenses including employees’ bonus and welfare payments amounting to RM7.7 million to meet its employees’ immediate financial needs during the Covid-19 pandemic.

“We need to offer long-term value for our shareholders with reasonable profits and investment returns. But at the same time, we must avoid any form of labour exploitation. We need to be kind to our employees, we need to reward them and we need to take good care of them, so that they will be more motivated to work harder,” he explains.

The stronger financial performance in 2QFY2021 was partly attributed to the maiden contribution from Accurus Scientific, whose financial results were consolidated into those of MI Technovation following the completion of the acquisition on April 19.

For perspective, Accurus Scientific made up 23% of MI Technovation’s top line and 10% of its profit before tax in 2QFY2021.

Oh highlights that with the acquisition of Accurus Scientific, MI Technovation has become the first and only semiconductor company in Malaysia to be involved in both the equipment and materials businesses. “You can’t find another local peer that is as aggressive as us. Over the years, many equipment players have wanted to diversify into the materials business, while many materials players have wanted to venture into the equipment business, but none of them have made it.”

With both the equipment and materials businesses, Oh says MI Technovation can now provide its customers with one-stop solutions. “If you have problems with equipment, you can come to us. If you have problems with materials, you can also come to us. We believe we now have the upper hand over our competitors. That’s why an American smartphone maker and a smartphone chip designer are willing to work with us,” he continues.

Oh says the two business units are a perfect fit for MI Technovation to capture a bigger market share, noting that a lot of synergies can be derived from its acquisition of Accurus Scientific, which has its own technology and capability in designing, as well as equipment to produce solder balls.

“That’s why the major shareholders of Accurus Scientific are willing to take up our shares instead of cash. They are not cashing out. They want to be in the same boat as us,” he adds.

Targeting two more business units

For its upcoming third business unit, Oh reveals that MI Technovation will be looking at businesses related to high-tech advanced packaging and development, advanced solutions and services, as well as specific semiconductor manufacturing processes.

“I can’t divulge the details at the moment but we have already started working on it. We now have a research and development (R&D) team specifically looking at developing the third business unit. And if the timing is right, we might also acquire a company to accelerate our business diversification,” he says.

With its existing equipment and materials businesses, Oh opines that MI Technovation should be able to develop a new, advanced packaging technology.

“We want to introduce a game-changing product to the market. We do not want to be a market follower, which can only compete on price. That’s not what we want to do,” he says.

On the fourth business unit, Oh says the company will be looking at commercial electronic products for the mass market, with high-technology content.

He cites a British multinational corporation (MNC) best known for its vacuum cleaners and hair dryers. “These household products have already existed decades ago, but why is its brand still so famous today? It’s all about putting new technology into old applications, which could result in something that is totally different. The combination will increase the performance of the household products, and more importantly, enhance the user experience. That’s why the company can sell at such a premium price, but it still drives the market crazy and everyone is buying it.”

Oh anticipates that in years to come, there will be more technology elements in household products such as microwaves, air conditioners, fans, kettles and washing machines.

Shares of MI Technovation have gained 5% year to date to close at RM4.25 last Wednesday, giving it a market capitalisation of RM3.5 billion. The stock is currently trading at a historical price-earnings ratio (PER) of 67 times. Against its consensus target price of RM5.16, which reflects 45 times forward PER, it has an upside potential of 21%.

According to research analysts, potential catalysts for MI Technovation include its earnings-accretive acquisitions, new equipment launches, a weaker ringgit against the US dollar, as well as its organic capacity expansion.

The company’s strong share price performance since its listing in 2018 propelled Oh into Forbes’ Malaysia’s 50 Richest list for the first time in 2020. He was ranked 50th with a net worth of US$255 million last year, before climbing to 41st place with a wealth of US$410 million this year.

“To be honest, I don’t read too much into the Forbes list. I focus more on building the company and developing the businesses. I appreciate what Forbes did. To me, it’s just a recognition, not an achievement. I have a bigger dream. I want to make sure that MI Technovation can grow from a Malaysian technology company to become an MNC,” says Oh.

“I grew up in Malaysia, I am educated in Malaysia, I started a business in Malaysia, and we take pride in what we do. If you think about it, Taiwan is strong in the global semiconductor sector. Psychologically, it is not easy for a Taiwanese company like Accurus Scientific to accept the fact that it is now under a Malaysian parent,” he adds.

On the company’s share price and stock valuation, Oh acknowledges that MI Technovation needs to continue to do a good job and let the market value the company accordingly. Hopefully, he says, the group’s robust earnings performance will be reflected in its share price.

“We cannot look at the share price first and then go back to our business fundamentals. I understand that some investors expect us to deliver good results every quarter, but we don’t want to be driven by the market. We want to be driven by our roadmap and master plan. If you look at our corporate history, we are still a relatively young and fast-growing company. There will be more to come from us,” he says.

Source: The Edge Malaysia

MI Technovation aims to be a diversified semiconductor solutions provider


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The Ministry of Investment, Trade and Industry (MITI) is looking into carbon tax implementation to encourage green investment in the country, particularly involving sectors that produce high carbon emissions.

Its minister, Tengku Datuk Seri Zafrul Abdul Aziz said the carrot and stick approach (reward and punishment) is crucial in ensuring transparency and a fair environment for businesses.

In term of punishment, he said all developed countries are more towards carbon tax.

“We are discussing with the Finance Ministry (MoF) and Natural Resources and Environmental Sustainability Ministry (NRES) to see how this can be implemented.”

“In fact, this was discussed at the National Investment Council and the MoF has been given a timeline to look into this matter and they need more time to study it holistically,” he said.

For example, Tengku Zafrul said, only one sub-sector of the manufacturing sector already contributes almost 25 percent of the country’s carbon emissions.

“Of course, if we have a stick approach, we need to make sure that companies are ready to comply,” he said at a media conference after presenting the Green Investment Strategy here today.

According to Tengku Zafrul, if the carbon tax is not implemented, companies will not have much incentive to carry out investments to reduce their respective carbon emissions, as it involves higher costs.

“Businesses that investsto improve their carbon emission will definitely be incurring higher costs. So they’d be less competitive than (a business) that was not investing in reducing their carbon emission,” he added.

During the presentation, Tengku Zafrul said the Green Investment Strategy (GIS) aspires to make Malaysia a major green investment destination by 2030 based on the goal of net zero and socio-economic prosperity in the NETR and New Industrial Master Plan (NIMP) 2030.

According to him, 65 per cent of the green investments achieved in Malaysia are dominated by domestic investment and hence, the GIS is anticipated to increase the foreign investment portion.

He said the GIS anticipates to contribute RM80 billion to the gross domestic product (GDP) by 2030 and will create 350,000 high-skilled jobs to boost the nation’s socio-economic development.

Tengku Zafrul said the GIS will increase investment competitiveness, with Malaysia’s Global Competitiveness and Global Opportunity Index standing expected to be in the top 20 by 2030.

The GIS also aims to reduce the nation’s carbon intensity as much as 45 per cent by 2030 from 33 per cent in 2021 while gaining Grade A in the Sustainalytics Rating from Grade C, he said.

Source: NST

MITI looking at imposing carbon tax to spur green investments in the country – Tengku Zafrul


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The Investment, Trade and Industry Ministry (MITI) aims to attract RM300 billion worth of green investments by 2030 to achieve Malaysia’s net zero emission commitments.

MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia achieved realised green investments of about RM40 billion between 2017 and 2023.

“In the Green Investment Strategy (GIS), we plan to increase it to RM300 billion up to 2030. That is a very aggressive target but that is the target we need to achieve.

“This is a 7.5 times increase that we need, and this is in line with the National Energy Transition Roadmap, which aims to achieve RM300 billion over the next decade so that we can achieve net zero carbon emission by 2050,” he told a Green Investment Strategy media conference here today.

According to him, the Green Investment Strategy was designed, taking into account various key policies to ensure a holistic, complementary approach with no overlapping.

It complements the country’s long-term policies such as the 12th Malaysia Plan and MADANI Economic framework, setting the direction for an inclusive and sustainable economic development.

As for Budget 2025, Tengku Zafrul said local companies need Finance Ministry incentives to make that transition into green energy.

For example, factories that lack efficiency will result in more carbon emissions. They need to invest in newer technology to improve efficiency.

“ That is an investment cost. If possible, we want to look into how local companies and small and medium enterprises benefit from the incentives or lower funding to make that transition,” he added.

In terms of socio-economic growth, Tengku Zafrul said the Green Investment Strategy is expected to contribute RM80 billion to the gross development product (GDP) and create 350,000 high-skilled jobs by 2030.

Zafrul also said MITI will work with Bank Negara Malaysia to expand the criteria and scope of green financing.

“We want to enlarge the criteria as well as financing scope to make it more inclusive, especially among small and medium-sized enterprises who faced challenges meeting financing conditions,“ he added.

Source: Bernama

MITI aims to attract RM300b of green investments by 2030


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Prime Minister Datuk Seri Anwar Ibrahim wants all parties to support and play a role in achieving Malaysia’s aspirations to be among the top 20 countries in terms of artificial intelligence (AI) technology.

For that purpose, he wants researchers, developers and decision-makers to work together to develop and adopt AI-related technology responsibly and ethically.

“We (the government) have agreed to help build the national AI ecosystem, especially in terms of having a centre of excellence to facilitate AI learning and research, including creating Malaysia’s very own AI cloud computing system.

“At the same time, I also want to stress that human values, data protection and the responsible use of technology are all affected and given a new meaning by this technology,” he said in his opening speech at the International Conference on Innovation and Entrepreneurship in Computing, Engineering and Education Science (InvENT 2024) at Universiti Teknologi Mara (UiTM) Shah Alam here today.

His speech text was read out by Deputy Higher Education Minister Datuk Mustapha Sakmud.

Anwar said that despite helping to improve the quality of life, efficiency and creativity of humans, the modern and dynamic Generative AI technology also has a dark side that society needs to be aware of.

The Prime Minister said deep fake technology, for example, is capable of eroding trust in digital reality and fundamentally changing the public’s perception of reality, threatening the integrity of information and causing confusion.

As such, he said the government’s general approach is to minimise risk by identifying the risks associated with the impact of AI on society and people’s lives.

“However, at the same time, we also need policies and laws to avoid the issue of leakage in AI governance,” he said.

In his speech, Anwar also touched on the regulatory aspects where Malaysia is now actively involved in forming digital economy cooperation at the ASEAN level, including the Digital Economy Framework Agreement (DEFA) in addition to the Cyber Security Bill 2024 tabled last March.

He said the Personal Data Protection Department is also in the final stage of formulating the bill to amend the Personal Data Protection Act 2010 [Act 709] in addition to the national data sharing bill, which is being formulated by the National Digital Department.

Source: Bernama

PM Anwar calls on all parties to support Malaysia’s aspiration to be top 20 AI nation


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Sabah’s palm oil downstream industry recently attracted three Chinese enterprises for an on-site visit in the state, said Datuk Chan Foong Hin.

The deputy plantation and commodities minister said these companies were looking into potential avenues for investment and collaboration in setting up operations in Sabah.

The Chinese delegation had expressed keen interest in Sabah’s palm oil downstream industry, particularly in value-added processing of palm kernel cake (PKC), and the production of biomass energy and sustainable aviation fuel (SAF) from palm oil mill effluent (POME) and pretreated used cooking oil (UCO).

Chan said, as Malaysia’s leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry.

He said by focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.

“Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors.

“It is encouraging to see these efforts bear fruit, as they have successfully generated significant interest and investment intent from Chinese companies in Sabah’s palm oil downstream industry.

“My ministry and I warmly welcome this development. In response, we have worked closely with various agencies to arrange their visit, ensuring they can fully appreciate the vast potential Sabah offers, thereby enhancing their confidence and commitment to investing here,” he said in a statement.

Chan, who is also the Kota Kinabalu member of parliament, added that the Chinese delegation toured the Sawit POIC Sandakan Industrial Park and participated in a roundtable discussion with both federal and state government agencies.

“This meeting primarily focused on exploring the investment opportunities in Sabah, and providing insights on the various incentives and support measures available for foreign investors looking to establish operations here,” said Chan.

Source: NST

Palm oil downstream industry in Sabah attracting Chinese investors


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The immense potential of Sabah’s palm oil downstream industry has recently attracted three Chinese enterprises for an on-site visit in Sabah.

Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said these Chinese companies are looking into the potential avenues for investment and collaboration in setting up operations in Sabah.

In a statement today, Chan noted that over the past two days, representatives from Grand Oil and Food, Welle Environmental Group and Freepoints Commodities have been in Sabah to gain a deeper understanding of the current state and future prospects of the palm oil downstream sector.

“Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors. It is encouraging to see these efforts bear fruit, as they have successfully generated significant interest and investment intent from Chinese companies in Sabah’s palm oil downstream industry. My ministry and I warmly welcome this development. In response, we have worked closely with various agencies to arrange their visit, ensuring they can fully appreciate the vast potential Sabah offers, thereby enhancing their confidence and commitment to investing here,” said Chan.

The Chinese delegation first visited Sandakan, where they toured the Sawit POIC Sandakan Industrial Park, guided by Sawit Kinabalu Group, to inspect the facilities and port infrastructure. Sandakan member of parliament Vivian Wong was present too.

“I extend my gratitude to Datuk Frankie Poon, chairman of the Sabah Development Berhad (SDB), and State Assemblyman for Tanjung Papat, for his proactive cooperation and coordination through the Sabah government-linked companies during this visit. This has strengthened foreign investors’ confidence in Sabah’s economy and fostered close collaborative relationships,” Chan added.

Following their visit to Sandakan, the Chinese delegation traveled to Kota Kinabalu to participate in a roundtable discussion led by the Ministry of Plantation and Commodities, involving both federal and state government agencies and the Chinese delegation.

“This meeting primarily focused on exploring the investment opportunities in Sabah, and providing insights on the various incentives and support measures available for foreign investors looking to establish operations here,” said Chan.

Additionally, the Chinese delegation expressed keen interest in Sabah’s palm oil downstream industry, particularly in value-added processing of Palm Kernel Cake (PKC), and the production of biomass energy and Sustainable Aviation Fuel (SAF) from Palm Oil Mill Effluent (POME) and pre-treat used cooking oil (UCO).

Chan highlighted that as Malaysia’s leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry. By focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.

The roundtable meeting was attended by various state-level agencies, including the Sabah’s Ministry of Industrial Development and Entrepreneurship (MIDE), the Malaysian Palm Oil Board (MPOB) Sabah Region, the Malaysian Investment Development Authority (MIDA) Sabah, the Sabah Economic Development and Investment Authority (SEDIA), POIC Lahad Datu, Sawit POIC Sandakan, the Sabah Environmental Protection Department, and Invest Sabah.

Source: Borneo Post

Chinese firms explore Sabah investment opportunities


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The rapid growth of data centres, particularly in the Klang Valley and Johor, is ramping up job opportunities and production as Malaysia aims to emerge as South-East Asia’s main data centre hub.

As the country is set to rake in RM3.6bil in revenue from the data centre industry next year – an increase from the RM2.09bil in 2022 – specialised jobs in engineering and management are expected to flourish.

In a recent interview, Malaysia Digital Economy Corporation (MDEC) chief executive officer Mahadhir Aziz said the growth of data centres in Malaysia is poised to generate significant indirect job opportunities across various sectors, including manufacturing, construction and logistics.

He said data centres are fundamentally engineering-driven enterprises, with a wide range of engineering roles required during various phases, such as design, planning, site acquisition and construction.

“These roles span across civil, electrical, cooling, mechanical, fire mitigation, and physical security engineering.

“During the operational phase, additional roles will emerge in facilities and data centre management and operations to ensure smooth, sustainable operations and to address any potential issues that arise,” he added.

Mahadhir said the growing demand for the materials, components and technology required for data centre construction and maintenance would also boost the local manufacturing industry.

In recent years, several global tech giants like Google, Amazon Web Services (AWS) and Microsoft have mooted plans to develop cloud computing infrastructure in Malaysia, with AWS looking into a long-term investment of up to US$6bil (RM26.6bil) up to the year 2037.

Earlier this month, Deputy Communications Minister Teo Nie Ching said RM76bil worth of data centre-related investments had been approved by the Investment, Trade and Industry Ministry via the Malaysian Investment Development Authority from 2021 to March 2024.

She said the country was seeing more industry players investing in the digital economy and data centre operations.

Meanwhile, Mahadhir said data centres would also require non-technical roles in human resources, finance and project management, as well as environment, health, and safety.

“As businesses, data centres also necessitate the usual senior management roles, client services, customer training, sales and marketing, public policy, corporate affairs, and more.”

In anticipating future demand for skilled labour for data centre and related manufacturing sectors, Malaysia’s education and vocational training institutions also have a critical role to play, he said.

Collaboration with industry players is also essential to ensuring that curricula are not only up to date with industrial demand but also anticipate future trends.

“This alignment will create a talent pipeline that is well prepared to support the rapid expansion of the data centre sector,” said Mahadhir.

Source: The Star

Data hubs to bring change


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